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Financial Planning / Tax Strategies


Subject:  Re: federal income tax questions Date:  3/3/2021  2:53 PM
Author:  ptheland Number:  132143 of 132662

If within the same broker, why?

Because of the way wash sales are required to be reported by the broker.

On the sale that is affected by the wash, the broker must report the original cost and then separately report the amount of the loss disallowed because of the wash sale rules. That is an adjustment which can only be reported on Form 8949. The shortcut reporting (using totals only on schedule D) is only possible when there are no adjustments.

So - wash sales are an adjustment, and require the use of form 8949.

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